Q & A

What is a Battery Energy Storage System (BESS)?

Energy storage is a constant part of our daily lives. The batteries in your phone, computer, and other electronic devices are miniature versions of the battery energy storage systems linked to our electrical grid. This same technology is now used to provide backup power to homes and businesses, reduce power outages, enhance the reliability of our electrical grid, and help our communities utilize clean, affordable energy.

Just like charging your phone overnight, energy storage systems efficiently capture electricity for use when it's most needed. These systems include batteries, racks, inverters to convert DC to AC energy, communication equipment for control and monitoring, and safety equipment. All these components are housed in specially designed enclosures. Energy storage has been used for over a century, with some battery storage projects serving the electrical grid for more than a decade.

BESS: What do they look like? Where are they located?

Energy storage systems connected to the electrical grid are housed in specially engineered enclosures, outdoor-rated cabinets, or purpose-built buildings. While customer-sited residential systems are generally installed on the exterior of homes and about the size of whole-home HVAC systems, grid-scale facilities vary in size. A typical new utility-scale project can have dimensions ranging from a hockey rink or basketball court to a soccer field.

There are currently hundreds of utility-scale energy storage projects operating and in construction throughout the entire United States, including in extremes of arctic and desert environments, each tailored for the unique setting and community it serves. Energy storage facilities are located in dense, urban centers as well as rural and remote areas. These operating energy storage projects, wherever they are located, provide valuable services to the electrical grid in communities across the country.

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Why this location?

The Amador Project’s location was chosen based on its proximity to the existing electrical substation. For BESS projects to be efficient, they need to be near our electrical distribution infrastructure. The site between Rayburn Electric Cooperative’s substation and Explorer Pipeline’s booster station is ideal for minimizing impact on nature and the neighboring community. The approximately 48-acre site is significantly larger than the footprint of the battery energy storage being built. This substantial site size helps to reduce the impact on neighboring landowners. BESS projects are typically constructed on much smaller parcels of land.

Electricity from this existing substation provides the community with the power needed to run homes and local businesses and provides better resilience against extreme weather events; such as Winter Storm Uri.

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Are any permits necessary for this project?

As there is no federal involvement (i.e. funding, grants, permits, etc.), no federal nexus is triggered by project development in the proposed location.  Therefore, there is no National Environmental Protection Act (NEPA) process or permit to acquire for development or permitting related purposes on a federal level. However, Taaleri engaged in a voluntary NEPA like process in order to ensure environmental, social and cultural compatibility.

In Texas, there are no state-level permits applicable to battery energy storage projects not involving state lands or funding. The only state permit that may become applicable, but is ancillary to the project, is an electric transmission line permit issued through the Texas Public Utilities Commission (PUC) for lines of certain voltage. Otherwise, the typical construction-related permits have been acquired prior to construction, as applicable.

According to Van Zandt County, there are no zoning regulations, development ordinances, or building permitting requirements within the unincorporated areas of the county.  Although not required under local regulations, Taaleri recognizes the importance of engaging the local community, and being a good neighbor. While social consultations are not required as part of the local development process, Taaleri has provided project-related information to those interested and those within close proximity to the Project boundaries. Taaleri applies its responsible investment policy on all its investments and is committed to transparency and open dialogue, which includes arranging hearings with potentially impacted stakeholders, and taking action following legitimate concerns. Taaleri sent project information packages to each of the adjoining landowners via certified mail in March 2024. Two stakeholders asked questions, which were responded to. No further actions were requested or taken.

As no official public forum is available, and no county permitting process exists, Taaleri proactively established an online public platform (Amador Energy Storage) providing the project description, location, exhibits, studies conducted, other supporting documentation, and a link to provide feedback and to ask questions. This website was published in March 2024. In addition, Taaleri presented project and its safety measures in Van Zandt County Commissioner Court on 31^st of October 2024.

What Environmental and Due Diligence concerns exist for this type of project?

Construction-related activities associated with the Amador Battery Storage Project will consist of land clearing, grading, erection of equipment/fencing, and electrical installations. Although no local permitting is required, compliance with state and federal environmental laws is required by all investors and lenders involved with the project. Relevant state regulations, federal regulations, and agencies include:

• Clean Water Act (CWA)
  • Texas Commission on Environmental Quality (TCEQ)
  • TCEQ Surface Water Quality Standards
  • Spill Prevention, Control, and Countermeasure Plan (SPCC)

• Threatened & Endangered Species Act
  • Federally protected species
  • Migratory Bird Treaty Act (MBTA)
  • Bald & Golden Eagle Protection Act (BGEPA)
  • Texas Parks & Wildlife Department (TPWD) state protected species

• National Historic Preservation Act (NHPA)
  • Texas Historical Commission (THC) Section 106 Compliance

• Clean Air Act (CAA)
  • TCEQ Concrete Batch Permitting (if applicable)
  • Fugitive Dust control

Numerous environmental and due diligence studies/plans have been completed for the project:

• Wetland Delineation
• Phase I Environmental Site Assessment (ESA)
• Protected Species Habitat Assessment
• Environmental Assessment and Environmental Justice Assessment
• Stormwater Pollution Prevention Plan (SWPPP)
• Spill Prevention, Control & Countermeasure (SPCC)
• Construction Environmental Management Plan (EMP)

In addition, project proponents have coordinated proactively with the following regulators:

• Van Zandt County
• Van Zand County Fire Marshal
• Department of Defense (DoD)
• U.S. Army Corps of Engineers (USACE)‍

What impact will the battery energy storage system have on natural values?

During the planning phase, the construction work’s impact on natural values were assessed. As the lease area is large, there were opportunities to choose the location of the BESS. The final location and layout were selected to avoid felling trees and to reduce other impacts on natural values. The area chosen for the BESS construction was assessed to have a very low impact on natural values. Additionally, construction work activities have been fine tuned in respect of timing and practical measures to further reduce potential impact. When construction works are finished, areas temporarily used for construction activities will be landscaped and a high pollinator seed mix will be used to revegetate the site, to provide for a better biodiversity outcome on site.‍

How would project benefit from tax credit support?

Nearly all battery energy storage system (BESS) projects are competing to provide similar services in the ERCOT wholesale and ancillary services market. Since all BESS projects receive equal tax credit support under the federal government's Inflation Reduction Act (IRA), competitive market dynamics ensure that these subsidies primarily benefit local consumers in the ERCOT/Texas region. The owners of BESS projects, in turn, derive little to no direct benefit from the federal tax credits.

A comparable scenario would be if the federal government subsidized gasoline prices by $1 per gallon for all gas stations. Any gas station attempting to retain the subsidy as additional profit would quickly lose customers and revenue to competitors who pass the subsidy on to consumers.‍

How will the project benefit Van Zandt County?

Unlike many renewable energy projects in Texas that apply for tax abatements, the Amador BESS Project has not requested any. On one hand, the BESS will require using only few public services from Van Zandt County. On the other hand, the project will contribute over $10 million in property tax revenue, directly benefiting the county and the school district. Additionally, this energy storage facility, along with other energy storage projects, have the potential to prevent catastrophic power outages, like those experienced during Winter Storm Uri, by enhancing the reliability and resilience of the grid.‍

Is the project causing a risk to public safety?

We follow the highest health and safety standards and prioritize health and safety in every project decision. Our equipment supplier has an outstanding safety record, and we have intentionally chosen a site with a separation distance from residential areas that exceeds regulatory requirements and any findings from impact studies. There is no reason to believe that the Battery Energy Storage System or its construction related activity will cause any material risk to public health and safety.

What are the main fire safety features of the project?

Battery Technology Safety: The project uses lithium iron phosphate (LFP) battery technology, which is inherently safer than the nickel manganese cobalt (NMC) batteries referenced in past fire incidents. LFP batteries are significantly less prone to thermal runaway and emit fewer toxic gases in the unlikely event of a fire. Our equipment supplier, Fluence Energy, has confirmed the successful installation of over 40,000 battery energy storage enclosures globally, with zero incidents of failure or thermal runaway events with LFP technology. This exceptional record is supported by an advanced battery management system and 24/7 global monitoring, which has proven invaluable in safeguarding the public.

‍NFPA 855 Compliance: Project Amador is fully compliant with NFPA 855, the standard governing the installation of stationary energy storage systems, as also required by the Van Zandt County Fire Department. This standard includes specific separation distances between battery energy storage systems, nearby structures, and combustible materials, which effectively limits fire risk without the need for water for containment. Initial documentation of NFPA 855compliance has been delivered to County Fire Department and county officials.

‍Exhaust Gas Impact: The system is designed for the battery off-gas to be either consumed within the thermal runaway event or mitigated through passive and active venting, ensuring dilution and dispersion within approximately 50 feet of the enclosure. With predictable off-gas rates from LFP technology, we can implement effective measures to minimize any risk. For reference, League City, near Houston, conducted a study on battery energy storage impacts and deemed 200 feet to be a safe distance from residential areas (link). The Amador BESS Project design maintains all battery energy storage containers at least 200 feet from any property boundary.

Fire Department Training: We organized the first training sessions in December 2024 with the local fire department, mutual aid responders as well as fire departments in surrounding counties to handle any potential emergencies involving the facility. Annual refresher courses and re certifications are provided at no cost to local departments, ensuring responders are well-prepared and informed. LFP battery fires do not require water, specialized hazmat equipment, or advanced skills from firefighters. The role of the fire department in such unlikely incidents is to monitor the fire, which will self-extinguish with the support and oversight of the owner and equipment supplier representatives.